Volatility, AI, and the Fight Between Strong Data and Falling Rates

From Dallas, Texas, and Corona, California, KP checks in during one of the most confusing stretches in recent memory—where strong jobs data would normally push rates higher, yet bond yields are falling, and mortgage rates are improving. This episode breaks down why markets aren’t behaving the way headlines suggest, and how volatility, money flows, and uncertainty around AI and economic growth are reshaping the outlook for housing and interest rates.

KP explains how weakening labor trends, shifting bond market signals, and stock market rotations are quietly creating better rate conditions ahead of the spring purchase season. He also shares insights from the HousingWire Economic Summit, including why wage growth is beginning to converge with home prices, why builder concessions have surged to nearly 10%, and why housing activity may accelerate despite recent slow sales reports.

Zooming out, the episode explores the massive capital pouring into artificial intelligence—and why leaders like Elon Musk believe AI and robotics may be the only path to outgrow America’s fiscal instability. KP connects the dots between AI investment, productivity gains, energy constraints, and long-term economic survival, while also sharing practical mindset lessons on discipline, limiting factors, and how top performers operate during volatile cycles.

Episode Highlights:
00:00 – Elon Musk’s warning: fiscal instability and AI as the way out
00:50 – KP checks in from Dallas at the HousingWire Economic Summit
02:20 – Why job reports are volatile—and how they impact mortgage rates
04:00 – Labor market weakening and what it means for interest rates
06:00 – AI, productivity, and the future of economic growth
08:40 – America’s fiscal path and the role of robotics and AI
10:00 – Sales rallies, mindset, and performing during volatility
12:20 – Stock market volatility and money rotating into bonds
13:40 – Strong jobs report—but falling interest rates? Here’s why
16:20 – Why bond markets often lead the Fed
18:00 – Housing affordability, wages, and home price convergence
20:00 – Existing home sales slowdown—and why it may not matter
22:00 – Builder concessions surge and spring housing outlook

Volatility creates opportunity. Discipline turns it into results.

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